Pennsylvania Power & Light Co. will record a nonrecurring charge of approximately $74 million in the fourth quarter of 1994 to reflect the cost of the recent voluntary early retirement program, the company said Tuesday (1/3).

After income taxes, the charge will reduce net income by about $42 million, or 28 cents per share of common stock. A total of 639 of the 851 eligible employees elected to take early retirement under the program. It was offered as part of PP&L's ongoing effort to reduce costs and improve operating efficiency as the company moves toward a more competitive environment.

"The program will reduce our ongoing costs significantly. We expect to realize savings in operating expenses of about $35 million per year due to the early retirement program," said Ronald E. Hill, senior vice president-Financial.

In its rate increase request filed Dec. 30, PP&L asked the state Public Utility Commission for permission to recover the cost of the early retirement program over five years. The rate filing also reflects the expected savings from the program.

To the extent that the PUC permits recovery of the cost, PP&L will record a credit to income to reverse the charge to be recorded in the fourth quarter, Hill said.

PP&L supplies electricity to a 10,000-square-mile area of 29 counties in Central Eastern Pennsylvania. Among the communities it serves are Allentown, Bethlehem, Harrisburg, Hazleton, Lancaster, Scranton, Wilkes-Barre and Williamsport.